Supreme Court orders withdrawal of increase in POL prices

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ISLAMABAD: The Supreme Court on Friday ordered the government to withdraw the recent increase in petroleum prices. A three-member bench of the apex court headed by Chief Justice Iftikhar Muhamamd Chaudhry also directed the government to withdraw 9 percent additional sales tax on CNG.

The court in its short order in a suo moto case pertaining to the one percent hike in the General Sales Tax (GST) ruled, that the government was not authorized to impose additional GST.

The bench ordered the government to deposit all the money recovered through imposition of additional sales tax to the office of the Supreme Court Registrar.

The Supreme Court, which was requested to declare the Provisional Collection Taxes Act 1931 as ultra vires to the Constitution, declared that the aforesaid act was in conflict with the article 77 of the Constitution.

The court has the reserved the judgment on Thursday after hearing the parties concerned.

The Chief Justice observed on Thursday that if the provisional tax was allowed to be implemented, people would lose confidence in parliament.

The chief justice observed that an increase in the sales tax had led to a rise in the prices of food items. He said that one percent increase in the GST had caused 15 percent surge in prices.